On January 21, 2025, President Trump rescinded Executive Order (EO) 11246, signing into law a new Order, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” which terminates diversity, equity, and inclusion (DEI) discrimination in federal contracting.

EO 11246, signed by Lyndon B. Johnson in 1965, created the requirement for federal contractors to establish and maintain affirmative action programs to foster equal opportunity and prohibit discrimination based on race, color, religion, sex, sexual orientation, gender identity or national origin.

As a result of this rescission, affirmative action programs currently held by federal contractors will be considered illegal. Federal contractors have 90 days from the issuance of the new Order to lawfully cease compliance with EO 11246. For a deeper dive into the many intricate details this recission, please view the Presidential Action Report and the White House Fact Sheet.

For DirectEmployers Members, this may bring questions about the efficacy of your membership but rest assured that this rescission does not affect our core compliance solution offerings related to VEVRAA mandatory job listings, Section 503, or outreach to veterans and individuals with disabilities, all of which remain in effect.

Upon its establishment in 2001, DirectEmployers worked to develop proprietary technology that has since led to the creation of our flagship product—a federal contractor compliance solution that assists with the Office of Federal Contract Compliance Program’s (OFCCP) VEVRAA mandatory listing requirements and Section 503 regulations. Let’s take a closer look at what this solution includes:

VEVRAA Mandatory Job Listing

A core component of DirectEmployers’ Membership is to list jobs with the appropriate American Job Center/ and employment service delivery systems (ESDS) via nightly electronic acquisition and delivery of jobs, as required by the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA). In addition, Members are provided with reporting as proof of job delivery to be used in a compliance evaluation.

State Job Bank Posting

In addition to complying with VEVRAA mandatory job listing requirements, DirectEmployers also delivers jobs directly to state job banks in all 50 states and territories of Puerto Rico, Guam, the District of Columbia, and the U.S. Virgin Islands to help in establishing cohesive collaboration between employers and state workforce agencies.

Outreach Management

Our outreach management solutions, including the Partner Relationship Manager (PRM) and Targeted Job Distribution, allow you to build rapport with national and community-based veteran and disability-focused organizations, assisting in compliance with VEVRAA and Section 503 outreach efforts. Our dedicated partnership team also remains committed to assisting Members in these efforts, helping to establish connections to assist with special hiring needs or helping you start the conversation with organizations.

VetCentral

Our proprietary VetCentral technology, designed and developed by DirectEmployers, delivers federal contractor jobs for compliance with the active Jobs for Veterans Act (JVA) and VEVRAA, providing priority veteran referrals, and acting as a resource of current jobs for the over 1,800 local veterans’ employment representatives (LVERs) and disabled veteran outreach specialists (DVOPs), and Business Service Representatives throughout the country.

VocRehab+

Our VocRehab+ job delivery solution also remains an invaluable option for those looking to build connections with a nationwide network of 1,000+ vocational rehabilitation (VR) counselors, tap into your local disability talent pool, and drive positive employment outcomes for individuals with disabilities.

While certainly having a significant impact on the federal contractor community and affirmative action, the rescission does not affect the primary membership compliance solutions included in DirectEmployers membership. Members with questions or concerns are asked to please reach out to their membership team for further assistance.